Beruflich Dokumente
Kultur Dokumente
Guide to Legislation
2012-13
This is a general guide to the provisions
of the Land Tax Act 1936 and the Land
Tax Regulations 2010.
Authorised copies of the Act can be purchased from the Service SA Government Legislation Outlet, Ground Floor, 101 Grenfell Street,
Adelaide.
Online versions of state legislation are available at the South Australian legislation website:
www.legislation.sa.gov.au
For further details on any matters relating to the Acts mentioned in this Guide to Legislation, please contact RevenueSA on (08) 8204 9870.
Contents
Contents...........................................................................3
Introduction............................................................................5
Summary of land tax..............................................................5
Objections...................................................................... 27
Objection to Commissioners assessment or decision........27
Objection to valuations........................................................27
Payment of land tax pending an objection...........................27
Miscellaneous................................................................ 31
Advising change of address.................................................31
GST.....................................................................................31
Further Information....................................................... 32
Land Tax: Guide to Legislation 2012-13
page 3
Mike Walker
COMMISSIONER OF STATE TAXATION
2 July 2012
Land tax is a state tax, and in South Australia is levied under the Land Tax
Act 1936 (the Act) and the Land Tax Regulations 2010 (the Regulations).
It operates in conjunction with the Taxation Administration Act 1996, which
contains administrative provisions relating to such matters as objections and
appeals, the charging of interest and penalties, etc.
Introduction
The tax forms part of the general revenue of the state and is applied towards
financing the costs of the government including the provision of health,
education, police, community welfare services and other services for which no
direct charges are made.
Land tax is levied each financial year and can be paid by quarterly
instalments. The liability for the payment falls upon the owner of the land as
at midnight on 30 June immediately preceding the financial year for which the
tax is levied, i.e. the owner of the land at midnight on 30 June 2012 is liable
for the tax for the year 1 July 2012 to 30 June 2013 (2012-13 financial year).
The tax is based on the site value of the land as determined by the ValuerGeneral pursuant to the Valuation of Land Act 1971. Broadly, the site value is
the value of the land excluding buildings or other improvements.
Land tax is calculated by applying a progressive rate structure to the
aggregated site value of land held by an owner at midnight on the relevant
30 June.
Some exemptions apply to certain categories of land.
Unpaid land tax can remain a charge on the land. When settlement occurs
for the sale and purchase of land, arrangements should be made for the full
payment of the current years tax and any other arrears, even if the vendor
has chosen to pay by instalments.
Taxpayers must notify the Commissioner of State Taxation (the
Commissioner) of changes of address for the service of notices.
Land tax is not subject to the Goods and Services Tax (GST).
Summary of
land tax
Definition of
Owner
The liability for the payment of land tax falls upon the owner of the land as at
midnight on 30 June immediately preceding the financial year for which the
tax is levied. The term owner is generally taken to be the person whose name
appears on the Certificate of Title at the Lands Titles Office. However, there are
several exceptions to this rule, which are described in detail below.
Freehold land
The owner, in respect of freehold land, will be taken to be either the registered
owner or any person who is entitled to the legal or equitable ownership of the
land at midnight on 30 June immediately preceding the financial year for which
the tax is levied. This extends to a person who is entitled to purchase or acquire
the legal or equitable ownership of the land. In the absence of evidence to the
contrary, the registered owner is taken to be the taxpayer.
Shack sites
Shack site lessees of privately owned land are deemed to be the owner where:
the shack site is situated on or adjacent to the banks of the River Murray, a
tributary of the River Murray, or a lake or lagoon connected with the River
Murray or a tributary of the River Murray;
a registered lease existed as at midnight 30 June 1989 over the land; and
the term of the lease is at least 40 years.
Further, the occupier of land in a defined shack site area is similarly deemed to
be the land tax owner.
Any one of the joint owners of land may be held liable for the payment of the
whole amount of tax. However, it is the general practice of RevenueSA to issue
a Notice of Land Tax Assessment to the first-named joint owner for payment
of land tax, other registered owners will be noted as either ANR (another
person - where the additional owner has a different surname) or ORS (other
persons - where there are two or more additional owners). That person may
then recover a proportion from other joint owners.
Liability where
land is held in joint
ownership
Relevant date of
assessment
Valuations
of land
Land tax is levied each financial year with liability for the payment falling upon
the owner of the land as at midnight on 30 June immediately preceding the
financial year for which the tax is levied.
The site value for land tax purposes is as determined by the Valuer-General
under the Valuation of Land Act 1971. For the purpose of calculating the amount
of tax to be levied, the value in force at midnight on 30 June immediately
preceding the financial year for which the tax is levied, is applied.
The meaning of site value is defined in the Valuation of Land Act 1971. In
broad terms, it means the market value of the land disregarding the value of any
buildings or other improvements thereon.
Under the Valuation of Land Act 1971 the Valuer-General may make a separate
valuation of any portion of any land or may value a number of portions of land as
one. This does not mean, however, that the parcel of land to which a valuation
is attached will necessarily be recognised as a legal parcel of land for land tax
purposes.
A person who has any queries in relation to the valuation of their land must
contact the State Valuation Office by telephoning 1300 653 346.
See Objections
for more details
Any taxpayer who disagrees with the valuation attributed to their property has
the right to formally object to the Valuer-General.
of land, the taxable value of all land owned by the same owner(s) is totalled
(aggregated) for the calculation of land tax.
Note: (1) Land will only be aggregated in cases of joint ownership where
the owners of separate pieces of land are the same.
Example
A taxpayer who owns three separate parcels of land valued at $80000, $100000 and
$420000 as at midnight on 30 June, would pay land tax for the following financial year
based on the aggregate (or total) value.
Total Taxable Site Value
$80000
$100000
$420000
$600000
The corresponding Total Land Tax (calculated using the rates applying for the 2012-13
financial year) = $1661.50
The Total Land Tax is apportioned to each property in the ratio of its Taxable Site Value
to the Total Taxable Site Value of the ownership, as follows:
$80000
$600000
$100000
$600000
$420000
$600000
x $1661.50
$ 221.53
x $1661.50
$ 276.92
x $1661.50
Total
$ 1163.05
$1661.50
Ownership
Owner A
Owner B
Lot 1
99%
1%
Lot 2
100%
Owner Bs minor interest will be disregarded and Property 1 and Property 2 will be
aggregated under Owner As ownership unless Owner A can satisfy the
Commissioner that there is no doubt that Owner Bs interest in Property 1 was
created solely for a purpose, or entirely for purposes, unrelated to reducing the
amount of land tax payable in respect of any land.
Scenario Two
Property
Lot 1
Ownership
Owner A
Owner B
96%
4%
Lot 2
97%
Lot 3
100%
Owner C
3%
Scenario Three
Property
Ownership
Owner A
Owner B
Lot 1
99%
1%
Lot 2
100%
Ownership
Owner A
Lot 1
100%
Lot 2
50%
Owner B
50%
Property 1 and Property 2 will not be aggregated and will continue to be assessed for
land tax under separate ownerships.
Scenario Two
Property
Ownership
Owner A
Lot 1
Owner B
100%
Lot 2
100%
Lot 3
50%
50%
Property 1, Property 2 and Property 3 will not be aggregated and will continue to be
assessed for land tax under separate ownerships.
Rates of tax
Once the aggregated value is determined for an owner, land tax is calculated
using a progressive rate structure. The rates of land tax effective as at midnight
on 30 June 2012 for the 2012-13 financial year are as follows:
Taxable Value of Land
Subject to Tax
Amount of Tax
Below $316000
Nil
$316001 to $579000
$579001 to $842000
$842001 to $1052000
Over $1052000
A general exemption from land tax applies if the total amount of tax which would
otherwise be payable in any financial year is less than $20. At the rates of land
tax applying for the 2012-13 financial year, the effect of this is that no land tax is
payable if the total taxable value of all land owned is $319900 or less.
General exemption
from land tax
Where the general exemption does not apply, subject to conditions, the land
may qualify for one of a number of specific exemptions including:
Specific exemptions
land used for owners principal place of residence (land may be partially or
wholly exempt from land tax in this instance);
land used for primary production;
retirement villages occupied by residents as their principal place of
residence;
caravan parks;
residential parks;
supported residential facilities;
land used for religious purposes, a hospital subsidised by the State
Government, or a library administered by the Libraries Board of South
Australia;
land owned, let to or occupied by an association whose objects are/include
supplying assistance to helpless persons;
land owned, let to or occupied by an association which receives an annual
grant or subsidy from money voted by Parliament;
land owned by an association whose object(s) is/include the conservation of
native fauna or flora;
land owned or occupied without payment by a person or association carrying
on an educational institution not for profit;
land owned by an association established for a charitable, educational,
benevolent, religious, or philanthropic purpose;
land owned by specific types of:
------
See Refunds of
Overpaid Tax for additional
information relating to any
applicable refund.
Note: As a general rule, the Commissioner can only reassess a land tax
liability of a taxpayer for up to five years after the initial assessment of
the liability. Consequently any refund of overpaid tax can only be for a
maximum of five years.
However, in the case of an owner moving into their principal place of
residence during the financial year, a waiver or refund of land tax in
respect of that financial year must be sought on or before 30 September
following the end of the financial year for which the waiver or refund is
sought.
Details of these exemption provisions are described in detail below.
Land Used as
Owners Principal
Place of Residence
The Act provides that an exemption from land tax may be granted where the
Commissioner is satisfied that land owned and occupied by a natural person
constitutes the owners principal place of residence.
Land may be partially or wholly exempt from land tax.
75%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
See Refunds of
Overpaid Tax for additional
information relating to any
applicable refund.
e) that the person intends to occupy the land as their principal place of
residence after the completion of the building work; and
f) t he person is not receiving an exemption from land tax under another
provision of this subsection in relation to other land that constitutes the
persons principal place of residence.
The land will not be exempted from land tax for a period that exceeds three
years.
A person is not eligible for a waiver or refund of land tax for a financial year that
immediately follows a period of three financial years for which the person has
had the benefit of abovementioned exemption in respect of the same land.
The Act provides that an exemption from land tax may be granted where
the Commissioner is satisfied that land is used for the business of primary
production.
Land outside the defined rural area, i.e. land outside metropolitan
areas
Only the general conditions above need to be satisfied in order to gain a primary
production exemption from land tax where the land is situated outside the
defined rural area.
Where the Valuer-General has applied an eligible land use code to the land,
which satisfies these general conditions, the land receives an automatic
exemption from land tax.
Land inside the defined rural area, i.e. land inside metropolitan
areas
In addition to the general conditions above, any one of the following additional
conditions must be met in order to gain a primary production exemption from
land tax for land within the defined rural area:
the sole owner is a natural person who is engaged on a substantially full-time
basis (either on their own behalf or as an employee) in a relevant business;
the land is owned jointly or in common by two or more natural persons at
least one of whom is engaged on a substantially full-time basis (either on
their own behalf or as an employee) in a relevant business and any other
owner who is not so engaged is a relative of an owner so engaged;
the land is owned solely, jointly or in common by a retired person and the
following conditions are satisfied:
-- the retired person was, prior to their retirement, engaged on a
substantially full-time basis (either on their own behalf or as an employee)
in a relevant business;
-- the co-owner or co-owners of the land (if any) are relatives of the retired
person; and
-- a close relative of the retired person is currently engaged on a
substantially full-time basis (either on his or her own behalf or as an
employee) in a relevant business;
the land is owned solely or by tenancy in common by the executor of the will,
or the administrator of the estate, of a deceased person and the following
conditions are satisfied:
-- the deceased person was, prior to their death, engaged on a substantially
full-time basis (either on their own behalf or as an employee) in a relevant
business;
-- the co-owner or co-owners of the land (if any) are relatives of the
deceased person; and
-- a close relative of the deceased person is currently engaged on a
substantially full-time basis (either on their own behalf or as an employee)
in a relevant business;
(b)
the land or produce of the land is used to a significant extent for the
purpose of that business;
(b)
(c)
(b)
(c)
(d)
Retirement villages
occupied by residents
as their principal place
of residence
Caravan parks
Residential parks
Land may be wholly exempted from land tax if the land constitutes a caravan
park.
Retired persons relocatable home parks are eligible for exemption where the
relevant land is used for the purpose of establishing two or more relocatable
homes, over which rights of occupation for that purpose are granted by lease or
licence, predominantly to persons who are over the age of fifty-five years and
have retired from full-time employment.
A particular site within a residential park will be exempt in circumstances where
there is a relocatable home on the site owned by a natural person and occupied
by that person as their principal place of residence.
An exemption will also apply if it is likely that, within the ensuing twelve months,
there will be a relocatable home on the site owned by a natural person and
occupied by the natural person as their principal place of residence.
Supported residential
facilities
An exemption applies to land used for Supported Residential Facilities that are
licensed under the Supported Residential Facilities Act 1992.
Public land
Land of the Crown is exempt from land tax unless the Crown instrumentality
is a Public Corporation and is required to pay land tax pursuant to the Public
Corporations Act 1993, its own enabling legislation or by ministerial direction.
An exemption will also apply to land held by an association for the purpose of
preserving buildings or objects of historical value on the land.
Parkland, public roads, public cemeteries, and other public reserves are also
exempt.
Charitable, educational,
benevolent, religious
or philanthropic
associations
An association must own the land. The land must be used mainly or wholly for
the following sports:
cricket, football (all codes, e.g. Australian rules, rugby league, rugby union,
soccer), tennis, golf, bowling or other athletic sports or exercises; or
horse racing, trotting, dog racing, motor racing or other similar contests.
An association must own the land. The land must be used for social or
recreation of the association members. The association must be made up of
either former members of the armed forces or their dependants, the common
example of which would be any RSL (Returned Services League) club.
Ex-servicemen
(and dependants)
associations
Employer or
employee industrial
associations
Community
recreation
Agricultural show
grounds and
exhibition venues
Aged Care
An association must own the land. The association members must be employers
or employees, usually relating to a particular industry. The association must be
registered under a Commonwealth or state law relating to industrial conciliation
or arbitration. The land must be used for the purpose of the association.
An association must own the land. The objects of the association must be
to provide the land for the recreation of the local community. The term local
community refers to residents of a specified geographical locality, i.e. in the
general vicinity of the land.
An association must own the land. The land must be used for the purpose of
hosting agricultural shows and other similar exhibitions.
Land may be wholly exempted from land tax if the whole of the land is used for
the provision of residential care by an approved provider.
Land may be partially exempted from land tax if part of the land is used for the
provision of residential care by an approved provider by reducing its taxable
value by an amount equal to the value of that part of the land after applying any
principle determined by the Commissioner.
approved provider and residential care have the same meaning as
in the Aged Care Act 1997 of the Commonwealth.
Application for
Exemption
The owner of land may apply for an exemption or partial exemption of the land
through RevenueSA.
It is not necessary to apply for the general exemption in relation to the tax-free
threshold.
All application forms are available on:
www.revenuesa.sa.gov.au
and should be submitted along with supporting documentation, such as a
Constitution or Certificate of endorsement from the Australian Taxation Office.
Notice of
Exemption
Where the Commissioner exempts land (wholly or partially), notice will be given
to an owner stating the day from which the exemption applies, the extent of the
exemption and the grounds on which the exemption is granted. Owners have
21 days to notify the Commissioner of any inaccuracy.
Where the owner or purchaser of land has paid land tax in relation to the
financial year for which the exemption is sought, they may be eligible for a
refund, detailed in the following manner:
Refunds of
overpaid tax
Obligations of
owners of
exempted land
Frequency
of notices
Notices of Land Tax Assessment are usually issued between October and
November of the financial year for which the tax is levied. The taxpayer may
elect to pay their land tax liability by quarterly instalments or in full, by the date
that the first quarterly notice is due. Once taxpayers have elected to pay by
quarterly instalments, they will still have the option of paying the full remaining
liability when issued with any subsequent quarterly instalment advice.
Property owners who take up the instalment option will receive further notices to
pay the relevant quarterly instalment approximately thirty days prior to the due
date of that instalment.
The first Notice of Land Tax Assessment for payment describe the land being
taxed in terms of its ownership, description, site valuation and proportionate
liability.
Methods
of payment
Refer to the reverse side of your Notice of Land Tax Assessment for payment
options.
Payment of your Notice of Land Tax Assessment can be made in full as per
the Total Amount Due on your notice or by quarterly instalments. Part payments
of the full or instalment amount will not be accepted.
Payment options include:
BPAY (telephone or Internet);
payment in person at any outlet of the organisations listed on the reverse of
the Notice of Land Tax Assessment;
payment by cheque, money order or cash at RevenueSA;
payment by telephone via an Interactive Voice Response System on
1300 669 344; and
payment by mail to GPO Box 1647, ADELAIDE SA 5001.
Note: A credit card limit of $2000 per Payment Remittance Advice
applies.
A default in the payment of land tax, i.e. payment not made by the due date or
payment of only a portion of the amount due, will result in the full annual amount
including arrears outstanding becoming immediately due and payable.
This includes a default in the payment of any of the four instalments, e.g. if the
second instalment is not paid by the due date, or only portion of the second
instalment is paid, this will result in the second instalment, the third instalment
and the fourth instalment becoming immediately due and payable.
Property owners in default will be issued a Final Notice Reassessment for the
full annual amount including arrears outstanding, which will include penalty tax
and interest payable on the amount outstanding.
Objections
If you are dissatisfied with an assessment you may wish to contact RevenueSA
on the telephone number that appears on the Notice of Land Tax Assessment
in the first instance.
If you require an independent review of a tax assessment, you may lodge a
written objection within 60 days of the date of the assessment or decision with:
Objection to
Commissioners
assessment or
decision
Objection to
valuations
Any objection to an assessment or valuation does not mean payment of land tax
can be withheld pending the outcome of the objection. Taxpayers are reminded
that land tax is due and payable by the due date and the tax may be recovered
as if no objection were pending, including penalty tax and interest accruing.
Payment
of land tax
pending an
objection
Buying
or selling a property:
your rights and obligations in respect of land tax
Requesting
certificates
Certificates may also be requested over the counter from RevenueSA at:
Ground Floor
State Administration Centre
200 Victoria Square East
ADELAIDE SA 5000
RevenueSA will endeavour to provide a Certificate within twenty-four hours.
As specified by the applicant, the Certificate will be held for collection, posted,
faxed or left in the applicants RevenueSA delivery box (located at the above
address).
Further information
is available from
www.propertyassist.sa.gov.au
Ground Floor
101 Grenfell Street
ADELAIDE SA 5000
The statement, once compiled, will be held for collection, posted, or left in the
applicants LTO delivery box at the Lands Titles Office.
Certificate updates may be requested via RevNet (whether ordered individually
or as part of a Property Interest Report) or direct from RevenueSA (contact
details below). Where the Certificate is still current, there is no charge for this
service.
Payments of outstanding land tax liability stated in a Certificate may be
submitted by various means, as set out below:
Online
Payment may be made online by registered RevNet users at:
www.revnet.sa.gov.au
By mail
Payment by cheque or money order, accompanied by a copy of the Certificate,
may be sent to:
GPO Box 1647
ADELAIDE SA 5001
Requesting updates
of certificates
Payment of
outstanding liability
shown on a certificate
Indemnity offered to
purchaser of land
Where the amount of land tax stated in a Certificate is paid within a specified
period (currently 90 days after the issue date of the Certificate) or the Certificate
indicates that no amount is, or will, be payable, the purchaser (and their
(important note for purchasers) successors in title) are released from any liability to land tax that may later arise
in relation to any financial year commencing prior to the issue of the Certificate
(e.g. as a result of an increase in valuation of the land).
If such a liability does arise and the purchaser is indemnified as a result of the
provision mentioned above, the Commissioner may recover that further tax
amount (including penalties and interest, if any) from the recognised owner as at
the last 30 June prior to the change in ownership. However, if the purchaser is
not indemnified as a result of the provision mentioned above, the Commissioner
may, at his discretion, recover the unpaid tax (including penalties and interest,
if any) either from the purchaser (or his or her successors in title) or from the
recognised owner as at the last 30 June prior to the change in ownership.
To provide notice to prospective purchasers/transferees of the existence of
a land tax debt (which, pursuant to the Act, constitutes a first charge over
the land to which the tax relates), the Commissioner may, in certain limited
circumstances, effect registration of a permissive caveat over a relevant title or
titles.
Caveats registered for this purpose will be removed immediately upon payment
of the fee and full discharge of the outstanding land tax debt in respect of the
relevant land.
Where such a caveat appears on a title, the purchaser/transferee or their
broker etc, is encouraged to contact the Principal Compliance Officer, Debt
Management Services on (08) 8226 3116 for further information.
Advising change
of ownership
Where a transfer of land has been settled but not registered at the Lands Titles
Office with effect from 30 June of the financial year in which the change in
ownership occurred, the taxpayer should notify the Commissioner in writing of
the details of the change in ownership and provide evidence that settlement
occurred on or before 30 June.
Note: Generally the lodgement date will be recognised as the date of
change of ownership unless relevant evidence, such as the date when the
documents were duly stamped, can be produced to prove otherwise.
Miscellaneous
Advising change
of address
Land tax is included in the Federal Treasurers determination under A New Tax
System (Goods and Services Tax) Act 1999 and is NOT subject to GST.
GST
Further Information
Location
RevenueSA
State Administration Centre
200 Victoria Square East
ADELAIDE SA 5000
Postal
Telephone
Facsimile
landtax@sa.gov.au
Website
www.revenuesa.sa.gov.au